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WILL THE GLOBAL CRISIS LEAD TO GLOBAL TRANSFORMATIONS? 1. THE GLOBAL FINANCIAL SYSTEM: PROS AND CONS


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This article analyzes the global causes of the contemporary crisis and the possibilities to eliminate the most acute problems that have generated this crisis.It analyzes both the negative role of the world financial flows and their important positive functions including the âinsuranceâ of social guaranties at the global scale. Ðn the one hand, anarchic and extremely rapid development of
new financial centers and financial flows contributed to the outbreak of the
global financial-economic crisis. The latter was amplified by the nontransparency
of many financial instruments, which led to the actual concealment
of risks and their global underestimation. On the other hand, new financial
technologies decrease risks in a rather effective way, they expand possibilities
to attract and accumulate enormous capitals, actors, and markets. The
modern financial sector also contributes to the provision of insurance for social
funds at the global scale. The participation of pension and insurance funds
in financial operations leads to the globalization of the social sphere. Countries
poor in capital, but with large cohorts of young population, are involved
more and more in a very important (though not quite apparent) process of
supporting the elderly portion of the population in the West through the vigorous unification of the world's financial flows, their standardization, and by increasing global mobility and anonymity


Language English
Collection opensource


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